Duration of the LBP

The duration of the LBP dictates the pace at which the weights of Token A ($Weight_A$) and Token B ($Weight_B$) adjust over time. The time schedule thus controls the overall pace of price discovery and influences market participation throughout the LBP.

Impact on Price Trajectory

A longer LBP duration allows for more gradual weight adjustments, leading to a slower decrease in the price of Token A. This can create a more stable price discovery process.

A shorter LBP duration results in faster weight adjustments, causing a quicker drop in the price of Token A, which may lead to more rapid market activity.